History, or at least precedence, was made Tuesday evening when the Benicia City Council denied Valero a land use permit to bring in volatile Bakken and Tar Sands crude oil from North Dakota and Canada by train.

In what appeared to observers to be a stunning change of heart, the council unanimously agreed with the Planning Commission’s earlier recommendation to reject Valero’s project permit.

With other Northern California cities —and San Luis Obispo—watching carefully, the council’s action set a precedent and reaffirmed a city’s right to regulate local land use and protect the health and safety of its citizens.

The decision may have marked the first significant rejection by a California small town of a fossil fuel company’s proposed major business expansion, and probably notes the diminishing power of the industry in local and state politics.

Interestingly enough, the most prominent rejection by a small town of an oil company’s intended expansion occurred in Denton, Texas. Denton, a quiet and prosperous suburb of Dallas, in the middle of America’s oil patch, banned fracking (a method of shale gas extraction that uses large amounts of water pumped at high pressure into channels drilled into rock to release gas) within the city limits in 2014.

Benicia council’s decision has signaled the city’s first steps away from its past dependence on the fossil fuel industry and its Company Town identity, and marks a tentative step toward a new reality. While local, the decision was significant and reflects the growing momentum of the megatrend known as the Green Industrial Revolution, which is replacing carbon dependent economies with those powered by renewable energy.

Despite the decision, and for years to come Benicia’s tax revenue will still be highly dependent on fossil fuel, and so the developments of the Green Industrial Revolution with its twin drivers of carbon emission reduction and non-carbon energy expansion will have enormous consequences. As the Green Industrial Revolution expands, it will lead to the decline of the fossil fuel industries and correspondingly to the reduction of Benicia’s tax base and carbon-dependent economy.

Here are some other recent events furthering this expansion, and while not local, all have a bearing on Benicia’s future.

The first event happened at the recent G20 meeting in Hangzhou, China. The G20 meeting, which occurs annually, brought together the world’s 20 major economies to discuss international problems and potential policies and solutions. Leaders from the U.S., the European Union, China, Japan and Russia among others, came together for the two-day summit. Next year’s meeting is in Germany.

Woodrow Clark, my writing/business partner, is a member of the B20, a G20 subgroup that focuses on international business and economic issues. As a member of the group that delivered a policy report at the Hangzhou meeting, Woody had a front row view of the historic G20 meeting. Among the policy discussions that the meeting generated, there were some remarkable initiatives. One was that Russia agreed to join the US and China, along with the EU in addressing climate change. I imagine that India will also commit to GHG reductions next year at the G20 meeting in Germany.

This is an expansion of the initial US/China agreement from December’s UN Climate Conference in Paris. It increases the pressure on the fossil fuel industry, which is already beset by plunging oil prices, corrupt and chaotic politics, and furthers the rapid development of non-carbon renewable energy. Its impact on Benicia is indirect, unlike a report from Japan’s Eneco Holdings, LTD, which was part of the G20 Executive Talk Series. (Here’s the link to the vertical edition http://g20executivetalkseries.com )

A second development was also part of the G20 meeting and featured the showcasing of a remarkable chemical breakthrough by Eneco Holdings, LTD, from Japan. The company has the potential to be one of Asia’s largest energy companies with their development of a nano-emulsion technology. It appears that the company has succeeded in making a “complete fusion” between water and oil through the ultra-miniaturization of components at the molecular level. In simple terms, they have succeeded, where all others have failed, in mixing water and oil into a combustible fuel. The result is a mixture that is 70 percent water and stable enough to be a used in internal combustion engines. Further, it is safe and environmentally friendly, emitting about half the carbon, nitrous oxide, and sulfur dioxide released in traditional internal combustion gasoline and diesel combustions. Additionally, when produced in large quantities it will be significantly cheaper than conventional gasoline and diesel.

Originally produced for the Japanese market, Eneco’s Plasma Fusion fuel is being tested and used in China and other parts of Asia. With clean emissions levels, it is ideal for the heavily polluted Asian megacities, and should rapidly grow into a viable alternative to conventional gasoline and diesel. Just imagine how healthy West Oakland’s port area would be without its diesel contaminates? Regardless, this emulsion fuel will be a transitional fuel to hydrogen powered vehicles.

The third development that will have a significant impact on the fossil fuel industries is the continual plunge in the price of solar panels. Last week at a meeting, a solar developer told me that panel prices are now the lowest they have ever been in California, plus they are functioning at their highest levels of efficiency.

Driven by the economic principle of Zero Cost Margins—once the equipment is paid for, the rest of the energy is free—solar and renewable energy are expanding at the rate of Moore’s Law, or doubling about every 18 months. Developing and developed nations are rapidly adopting renewable energy, mostly wind and solar, as a replacement for fossil fuels. In about 20 areas in the world, particularly in Asia, solar and renewable energy are less expensive than fossil fuel. Even Saudi Arabia and United Arab Emirates are developing large solar power generation sites.

Because of Russian aggression and threats of shutting off the natural gas supply, Europe has accelerated its transition from fossil fuel and atomic energy to wind and solar. Germany is a major user of solar energy despite the northern climate, and the United Kingdom is building the world’s biggest offshore wind farm called Hornsea off the Yorkshire coast. Hornsea will be the world’s first offshore wind farm to exceed 1 GW in capacity and will produce enough energy to power well over 1 million homes.

Closer to home, the United States’ Pacific coastline has enough wind and tidal resources to power most of the nation’s needs, and by adding solar to the mix, the U.S. could easily generate enough electricity for centuries to come. Roughly speaking, wind power costs about 2 to 4 cents per kilowatt hour and solar about 5 to 6 cents. PG&E charges around 22 to 24 cents per kilowatt hour, so it’s just a matter of time before on-site or distributive energy overtakes traditional energy delivery.

Further, the carbon industries and the large central utilities have flawed business models that are dependent on ever increasing growth and they cannot adapt to the lower prices available from renewable energy, or the increasing efficiency of vehicles and buildings. This is why Clark and I have written extensively on energy cost deflation and the shrinkage and decline of the carbon industries and the large central utilities.

Finally, we come to Sept. 8’s monumental signing by Gov. Jerry Brown of Senate Bill 32, the legislation that has catapulted California into a leadership role of the international efforts to slow global warming. SB 32 will force the state’s trillion-dollar economy, one of the biggest in the world, into a much smaller carbon footprint. In fact, the legislation requires the state to slash greenhouse gas emissions to 40 percent below 1990 levels by 2030, a much more ambitious target than the previous goal of hitting 1990 levels by 2020. Cutting emissions will affect nearly all aspects of our lives, accelerating the growth of renewable energy, prodding people into buying electric autos, and pushing developers into building denser communities connected to mass transit. (Details: http://www.latimes.com/politics/la-pol-ca-jerry-brown-signs-climate-laws-20160908-snap-story.html ).

One other key element to California’s pursuit of clean air and reduced greenhouse gases is the state’s cap-and-trade program. The program requires the state’s heavy polluters to buy carbon offsets, or credits, to release emissions into the atmosphere, creating an additional operating cost for the oil and utility industries.

SB 32 and the expansion of cap-and-trade will have dramatic impacts on the state’s fossil fuel industries. Likely many of us are driving our last conventional gasoline powered vehicle, with the next one probably powered by electricity or hydrogen. It’s not hard to predict that since the Bay Area’s refineries are the heaviest of the area’s polluters, that the combination of reduced revenue from shrinking demand and increased costs of production and operation will eventually lead to refinery closings.

The fossil fuel industries won’t give up easily, there’s trillions of dollars at stake. Many of the industries leaders and the more prescient investment bankers know that the fossil fuel era has peaked and started to decline, which is why Russia overran the Crimea and is poised to take over Ukraine. Which is why the U.S. and Canada are being besieged by the fossil fuel interests to ignore or eliminate environmental and safety protections that hamper production.

Which is why Valero pushed so hard to transport volatile Bakken crude by rail cars through the densely populated Sacramento corridor and cram the trains into Benicia and a refinery that is not designed or equipped to deal with them. The industries, the refineries and all connected to the fossil fuel era, know that the incredibly lucrative period when oil was king and black gold flowed from the sand is coming to an end.

Bringing this back to Benicia, we see a city that is dependent on Valero for tax revenue and its governing process glimpsing a new reality. Small cities like Benicia that have been so dependent on the fossil fuel industries for so much and for so long, struggle to change. Other cities like those in the deindustrialized Midwest that have suffered sudden collapses of their major companies and tax bases have had to reinvent their economic drivers or just blow away. But it’s hard for a city like Benicia with its apparent prosperity and ease of living to understand that its fossil fuel base is in decline and that the future is elsewhere.

Grant Cooke is a longtime Benicia resident and CEO of Sustainable Energy Associates. He is also an author and has written several books on the Green Industrial Revolution. His newest is “Smart Green Cities” by Routledge.

Climate bills pass Legislature, await Brown’s OK

By Melody Gutierrez, August 25, 2016Gov. Jerry Brown said he plans to sign the bills when they reach his desk. Photo: Lenny Ignelzi, Associated Press

SACRAMENTO — The California Legislature passed two bills Wednesday that extend the state’s ambitious goals to reduce the impact of greenhouse gases and provide additional oversight on the agency charged with carrying out climate-change policies.

Gov. Jerry Brown praised lawmakers for passing SB32 and AB197, saying passage was an important milestone after similar efforts failed last year amid intense lobbying by the oil industry. Brown said he plans to sign the bills when they reach his desk.

“Legislation is not like Twitter,” Brown said. “You don’t do it in 140 characters or in a few seconds. It takes months and sometimes years. It takes trying, failing, amending and trying again; negotiation. There are 120 members in the Legislature, and not everyone sees things the same way.”

SB32 calls for the state to reduce its greenhouse gas emissions to 40 percent below 1990 levels by 2030. The bill expands on AB32, the California Global Warming Solutions Act of 2006, which requires the state to reduce greenhouse gases to 1990 levels by 2020. The state is expected to reach that target.

“We have discovered, with these policies, our economy continues to go up, but our emissions are going down,” said termed-out state Sen. Fran Pavley, D-Agoura Hills (Los Angeles County). “It’s not a choice between a healthy environment and sound economy. In California, we can do it both ways.”

AB197 directs the California Air Resources Board to prioritize disadvantaged communities in its climate-change regulations, and to evaluate the cost-effectiveness of the measures it considers. The bill also allows the Legislature to appoint two lawmakers as nonvoting members of the board, a move supporters said will provide more transparency and oversight on the agency.

Lawmakers have criticized the lack of diversity on the board, and Assembly Speaker Anthony Rendon, D-Paramount (Los Angeles County) said the board has a credibility problem.

“Any exercise of authority has to be reviewed,” Brown said when asked about the criticism of the board that is largely appointed by him. “Any time you have the power to say no or reduce your high-carbon fuel, reduce your pollutants, change the way a carbonized society works, it will be felt with some sting. That’s the reality, but we want to make sure we are doing it in a way that advances our goals of equity and inclusion.”

Brown unsuccessfully lobbied to have the cap-and-trade program included in SB32, but lawmakers balked because the bill already faced an uncertain future in the Assembly. On Tuesday, the Assembly narrowly passed the bill with one vote to spare, although several Democratic lawmakers changed their votes to approve of the legislation after it passed.

The Senate passed SB32 on Wednesday in a 25-13 vote.

The future of cap-and-trade remains uncertain due to a legal challenge from the California Chamber of Commerce. That uncertainty, along with some fearing SB32 would not be signed into law, contributed to poor auction results this year.

EDITORIAL On Senate Bill 32

Step ahead on climate

California is doubling down in the fight against climate change. After teetering on defeat, a state bill that expands efforts to curb heat-trapping emissions is in the final stages of approval.

The measure, SB32, builds on the state’s plan in 2006 to cut greenhouse gases by 30 percent by 2020, a goal that’s already within reach. With both the Senate and now the Assembly in support, the bill pushes the state to trim climate-altering emissions by 40 percent by 2030.

An accompanying bill would give the state Air Resources Board more power to regulate industrial and refinery emissions in a bow to lawmakers from low-income areas who want more out of climate change ideas. That bill, AB197, is hanging, a target for business lobbyists who want to sink the overall effort. Passing this second measure is essential to complete a comprehensive effort.

Still, the success so far is worth notice. California isn’t budging from its course. White House aides and Gov. Jerry Brown called wavering moderate Democrats for their votes, which the same lawmakers had withheld last year. With the nation stalled on climate change steps, California has a chance to move forward and demonstrate the effects, costs and benefits of its aggressive steps. The ability to add pollution controls to a roaring economy is making the state a globally watched experiment.

The rules need attention. One key mechanism is the cap and trade exchange that obliges polluting industries to purchase credits from cleaner operations. The sales aren’t netting the expected amounts with less than $10 million spent in the latest auction. The money is due to go to pollution-limiting programs such as transit and the struggling high speed rail project.

Defenders of the cap and trade plan say that uncertainty over the legislative outcome is to blame for the weak revenue. Now that the state’s direction is emphatically decided, the value of pollution credits should stabilize, they argue. That’s a claim that needs testing.

On balance, Brown has been a good advocate for climate action, though he does have one notable blind spot: his continued silence on a plan to ship major quantities of coal through a new Oakland port facility for overseas combustion. That project just happens to belong to Phil Tagami, a buddy and political donor to the governor. May we remind the governor of his own words from last year: “It doesn’t make sense to be shutting down coal plants (in the U.S.) and then export it for somebody else to burn in a more dirty way,” he said.

Let the record be clear: Brown’s climate commitment is incomplete until he takes a stand, one way or another, on that Oakland coal train.

Repost from the San Francisco Chronicle[Editor: The following is a brief PORTION of a late-breaking SFChron news article. The article focuses on medical marijuana and racist mascots, then turns to breaking news on two climate change bills that are stalled in the California State Assembly. Latest on leginfo.ca.gov: SB32, SB350. – RS]

California government leaders…

By Melody Gutierrez, Updated: September 10, 2015 10:38pm

[near end of article] …Also stalling before the deadline was a climate change bill that aimed to chart the state’s path toward reducing greenhouse gas emissions. SB32 by Sen. Fran Pavley, D-Agoura Hills (Los Angeles County), would have required the state to reduce greenhouse gas emissions to 40 percent below 1990’s levels by 2030, and to 80 percent below 1990’s levels by 2050. Those targets were previously called for by former Gov. Arnold Schwarzenegger and Brown through executive orders.

The bill failed 25-33 in the Assembly on Tuesday and on Thursday Pavley said she would not seek another vote this year.

“Unfortunately, the state Assembly and the administration were not supportive, for now, and we could not pass this important proposal,” Pavley said in a statement.

SB32’s faltering came a day after another climate change bill was gutted.

SB350 no longer requires the state to cut petroleum use in half over the next 15 years, which Brown said was the result of well-financed opposition from the oil industry. The bill still calls for the state to boost energy efficiency in buildings by 50 percent and requires California to get half of its electricity from renewable sources by 2030.